ORHAN ÖZCAN
Particularly after World War II, the concept of the “middle class” has held significant importance in the development of nations, both in a sociological and economic sense. The middle class, which saw significant development in certain parts of the world between 1965 and 1985, has recently been in economic decline globally.
Although it lacks a very clear definition, the middle class is generally composed of a mix of culturally wealthy individuals, those with relatively high education levels, mostly ‘white-collar’ workers, and ‘blue-collar’ workers with relatively high incomes. This class, which is the primary subject of almost all taxes and does not benefit from public incentive support, was referred to as the “middle stratum” during the era of the late Turgut Özal in Turkey and targeted with promises of a house and a car for every family, the “two keys” promise, by Tansu Çiller to gain votes.
This class, forming the backbone of society and constantly demanding democracy, has been in significant decline in Turkey in recent years. Recent income distribution statistics show that this class is becoming increasingly impoverished. Income distribution statistics are studies conducted to determine the distribution of income within a country, using a methodology that is quite simple and superficial.
The country’s population is divided into five equal groups, and the shares and amounts received from the gross domestic product by each twenty percent group are determined. These statistics show a significant deterioration in the middle class in recent years, especially noticeable in 2022 and 2023.
Measurements using the Gini coefficient method in these statistics clearly show a significant decline in this class. Particularly, heterodox policies implemented in 2021 and 2022 and the “irrational” policies mentioned by Minister Mehmet ÅžimÅŸek upon taking office are the real reasons for this deterioration.
The 1990s were years of high inflation for Turkey. Salary increases for public and private sector workers were made according to the inflation rates accurately and transparently calculated by the Statistics Institute (DÄ°E) of that period. The inflation announced during those periods was both accurate, transparent, and matched the inflation felt by people.
In recent years, salary adjustments are made according to the completely discredited data from TÜİK. TÜİK’s inflation rate is almost half of the much more reliable rate announced by the independent inflation research group, ENAG (TÜİK’s annual inflation is 67%, while ENAG’s is 122%).
Since all salary adjustments are made based on TÜİK’s data, which only reflects half of ENAG’s and does not depict reality, this predominantly wage-earning middle class continues its downward trajectory. Moreover, TÜİK continues not to disclose the components of the inflation basket, even ignoring the lawsuit brought and won by DÄ°SK on this matter and the court’s decision.
We are witnessing practices and attitudes we have not seen in the past and continue to be surprised. It is very difficult to predict how much longer the middle class, which forms the backbone of society worldwide, will continue to become impoverished in Turkey in this manner. However, the outcome is quite apparent without needing a guide. The policies being implemented are not sufficient to reduce inflation, indicating that this downward trend is likely to continue.
This article was originally published in TR724.com and translated into English by Politurco.
